Which Organization Do you choose when you are planning to startup? A presentation on the questions you need to ask yourself.

1. WHAT
ORGANIZATIONAL SETUP?
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CONSULTING and is intended only for the person or entity to which it is addressed and may
contain confidential and/or privileged material. This information will need to be read in
preferably in conjunction with discussions on the subject matter.

2. INDEX
• What are the different types of
Organizational structures?
• What they actually imply?
• How do they differ?
• Choosing the Right Structure

3. What are the different types of
Organizational structures?

4. TYPES
OF ORGANIZATIONAL
STRUCTURES

5. What they actually imply?

6. SOLE PROPREITORSHIP
• Small in size, Individual owned and controlled.
• Absolute control over business with hundred percent ownership .
• Unlimited liability.
PARTNERSHIP FIRM
• Not an entity distinct from its partner.
• Pooling of resources and sharing of risk and rewards.
• Unlimited, joint and several liabilities of partners.
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7. LIMITED LIABILITY PARTNERSHIP
• Separate legal entity separate from its partners.
• Pooling of resources and sharing of risk and rewards.
• Liability of the partners is limited to the extent of his contribution.
COMPANY
• Separate legal entity distinct from its member.
• Separation of Ownership and Management.
• The liability of its member is limited to the extent of capital
contributed.
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8. How do they differ?

9. COMPARISON
PARAMETERS COMPANY PARTNERSHIP LLP
Cost of Formation HIGH LOW MODERATE
Minimum Capital 1 Lakh No Minimum No Minimum
Regulatory Compliances High Low Moderate
Effective tax rates 32.45% 30.90% 30.90%
Statutory Filings Annual Not Required Annual
Statutory Audit Compulsory Not Required Not Required
Credit Worthiness High Low Moderate
Change in Ownership Flexible Not Flexible Not Flexible
Separation of Ownership Possible Not Possible Not Possible
and Management

10. How does one Choose?

11. A QUESTIONNAIRE
INVESTMENT
What is the quantum of Initial investment?
What are the expected sources of funds?
OPERATIONS
What is the expected countries of operations?
What is the type of business intended to be carried out?
What is the expected Manpower number?
GROWTH PLANS
What are the growth plans for the next 5 years?
What are the areas in which you expect significant growth?
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12. A QUESTIONNAIRE
CONTROL
What are the Management and control expectations for the
operations of the Organization?
RISK
What is the quantum of risk that you are willing to absorb as
a shareholder?
What are the possible legal obligations arising from
Operations?
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13. How do you get in touch with us?
Pradyumna Nag Rakesh Bordia Rishabh Pahariya
Director Director Director
+91 988 63 44 590 +91 988 63 87 858 +91 988 68 21 280
nag@prequate.in bordia@prequate.in rishabh@prequate.in
Prequate Consultants Private Limited
11/2, 3 Cross, Wilson Garden
Bangalore – 560 027
+9180 22 22 50 40